steel in car manufacturing

UK steel tariff changes reshape import costs

Jun 9, 2026 | , , , , , , ,

The UK’s incoming steel trade measures are set to reshape import dynamics almost overnight, with significant cost and compliance implications for manufacturers, construction firms, and industrial supply chains.

From 1 July 2026, the UK will replace its current steel safeguards with a far more restrictive tariff rate quota (TRQ) system. Tariff-free quotas will be cut by around 60% overall, with some key product categories seeing reductions of up to 90%. At the same time, the duty applied to volumes above quota will double to 50%.

The measures apply across approximately 20 steel product categories, including flat products, bars, and pipes, and notably apply regardless of origin, including imports from EU and other trade agreement partners.

While positioned as a move to protect domestic steel production, the reality for importers is a much tighter and more punitive operating environment.

Why this matters for importers

For UK businesses reliant on imported steel, including automotive, machinery, construction, and engineering, the changes introduce both immediate cost risk and ongoing supply uncertainty.

The most significant shift is how quickly quotas are expected to be exhausted. With volumes sharply reduced, many categories could run out within days or weeks of each quarter opening, rather than lasting the full period. Once quotas are filled, any additional imports will face a 50% duty, creating a substantial and potentially unmanageable cost increase.

At the same time, domestic supply is unlikely to fill the gap. Many manufacturers rely on specific grades or forms of steel that are not readily available in the UK, meaning substitution is not always viable.

Rising costs and supply chain pressure

Industry bodies are already warning of widespread disruption. Higher input costs are expected to ripple through supply chains, increasing production costs and reducing competitiveness for UK manufacturers.

There is also growing concern around material availability. In sectors such as construction, limited domestic capacity combined with tighter import restrictions could lead to shortages of key products, delaying projects and adding further cost pressure.

For exporters, the impact is twofold: higher input costs at home and increased competition from overseas producers who are not subject to the same tariff burden.

Operational complexity increases

Beyond cost, the new regime introduces a more complex and time-sensitive import process.

The TRQ system will continue to operate on a first-come, first-served basis, with quarterly allocations managed through HMRC. This puts significant pressure on timing, both in terms of shipment planning and customs entry.

If a shipment is declared after a quota has been exhausted, it will immediately fall into the higher duty bracket, regardless of when it was shipped. This makes accurate forecasting, documentation, and coordination between supply chain partners critical.

Importers will need to pay close attention to:

  • Entry timing versus quota availability.
  • Correct tariff classification and documentation.
  • Coordination between forwarders, brokers, and internal teams.
  • Monitoring quota usage in near real time.

Even small missteps could result in substantial, avoidable duty exposure.

Behavioural shifts already underway

In response, many importers are already adjusting their strategies. There are signs of front-loading shipments ahead of the July deadline, alongside contingency planning based on higher landed cost scenarios.

Some businesses are modelling worst-case pricing as a baseline, while others are reviewing sourcing strategies or considering inventory increases to mitigate risk.

However, these are short-term responses. Longer term, the market may see shifts in sourcing patterns, pricing structures, and even production locations if cost pressures 

persist.

With additional measures such as the UK’s Carbon Border Adjustment Mechanism (CBAM) due to follow in 2027, importers face a longer-term trajectory of rising complexity and cost.

The new steel regime will penalise those who don’t plan ahead and prepare. Metro’s customs and compliance experts are already supporting clients with quota planning, tariff classification, and import strategy to minimise risk and control costs.

For tailored guidance on how these changes will affect your business, EMAIL Andy Fitchett, Metro’s Head of Customs & Compliance.

Rotterdam sunset

Port congestion spreads as delays ripple through global supply chains

Jun 9, 2026 | , , , , , , , , , , , , , , , ,

Port congestion in North Europe and East Asia is increasingly a two-ended problem: weather and capacity issues at origin delay departures, and when those same vessels finally reach port in Europe, they miss their planned berths and are forced to wait again, magnifying disruption throughout supply chains.

Congestion across key container gateways in Asia and Northern Europe is once again creating significant disruption with delays at Shanghai, Ningbo, Rotterdam and Antwerp increasingly feeding into one another and extending transit uncertainty across the entire east-west trade.

While individual delays at a single port are not unusual during peak season, the current challenge is the growing “cascade effect” developing across vessel schedules, inland transport networks and terminal operations.

In simple terms, disruption at one end of the trade lane is now directly increasing congestion at the other.

Weather disruption and vessel bunching hit China exports

Shanghai and Ningbo are both experiencing elevated congestion levels as heavy seasonal demand combines with poor weather, vessel bunching and continued schedule disruption linked to longer Cape routings.

Dense fog and adverse weather conditions around China’s east coast have already caused berth delays ranging from two to seven days at some Shanghai terminals, while Ningbo is also experiencing extended waiting times and increasing yard density pressure.

The knock-on effect quickly spreads through carrier schedules.

When vessels are delayed departing China, they frequently miss planned arrival windows into Northern Europe. Once that happens, carriers can lose their allocated berth slots, forcing vessels to wait offshore for new availability.

That creates a compounding cycle where both origin and destination ports become congested simultaneously.

Container equipment shortages are also worsening across major Asian export hubs as carriers struggle to reposition empty containers back into loading ports quickly enough to meet demand.

Rotterdam and Antwerp under mounting pressure

Northern Europe’s largest container hubs are now facing growing operational strain as delayed vessel arrivals collide with already congested inland transport networks.

Rotterdam and Antwerp are both reporting severe inland barge disruption, with waiting times regularly stretching towards four days. Yard utilisation remains extremely high across several terminals, while reduced crane availability, feeder delays and weather-related stoppages continue limiting operational fluidity.

Strong winds across Northern Europe have added further intermittent disruption, particularly at Antwerp, where terminals are struggling with vessel bunching and rising container dwell times.

The challenge extends far beyond the quayside.

As terminals prioritise delayed deep-sea vessels, inland barges often face secondary status within the operational flow, creating additional delays for hinterland cargo movement. In some cases, containers are remaining on terminals significantly longer than operationally ideal, increasing storage pressure and reducing yard efficiency.

Road and rail networks are also coming under increasing pressure as shippers divert cargo away from delayed barge services to avoid demurrage, detention and missed supply chain deadlines.

Inland transport disruption adds to the congestion cycle

The wider Northern European inland network is also becoming increasingly fragile.

Rail disruption across Germany, including infrastructure works, route closures and operational bottlenecks around Hamburg, is further complicating cargo flows into and out of the ports. Delayed trains, missed vessel connections and network overload are creating additional uncertainty for importers trying to maintain reliable inventory flows during an already volatile peak season environment.

This means delays are no longer isolated to one transport mode.

A weather delay in China can now create missed vessel berthing windows in Europe, which then impacts inland barges, rail schedules, feeder services and final cargo delivery timelines across multiple countries.

What this means for shippers

The current market reinforces how interconnected global container networks have become.

Longer transit times around the Cape of Good Hope have already reduced schedule reliability, while peak season demand and equipment shortages are tightening operational flexibility across both Asia and Europe.

For shippers, this creates growing importance around earlier booking windows, flexible inland transport planning and close coordination across origin, ocean and destination operations.

Importers moving time-sensitive cargo may increasingly need contingency planning around rail, road and barge options as congestion conditions continue evolving across Northern Europe during the summer peak period.

Metro combines global ocean freight expertise, proactive shipment management and integrated inland transport coordination to help customers minimise disruption and maintain cargo flow during volatile market conditions.

To discuss your supply chain planning, routing options or congestion mitigation strategies, EMAIL Managing Director Andrew Smith.

Maersk at FXT 1440x1080 1

Hormuz Is Pulling the Ocean Peak Forward

May 28, 2026 | , , , , , , , , , , , ,

Container shipping normally follows a traditional demand curve, with rates climbing into Chinese New Year, softening through spring, and then building towards a Q3 peak. But not this year.

The crisis around the Strait of Hormuz is introducing an extra layer of cost and volatility, which means that instead of a gentle spring lull, the market is moving into peak‑like conditions earlier, and from a higher baseline.

Analysis of more than a decade of data shows how sharply 2026 has diverged from normal patterns on key trade lanes.

Shanghai–Los Angeles rates typically peak three weeks before Chinese New Year as shippers rush orders out, then fall into a sustained post‑holiday slump. This year, the usual pre‑CNY dip was deeper than normal and was followed by an unusually sharp post‑holiday drop. Instead of then drifting sideways, spot rates turned and climbed steeply, with east and west coast transpacific spot rates well above where they would usually sit at this point in the cycle.

On Asia–North Europe, the deviation from normal seasonality emerged slightly earlier, with a two‑week offset, and post‑CNY declines less severe than on the transpacific. The premium over “normal” seasonal levels initially surged, then faded, only to re‑emerge as rates climbed again and remain elevated. The Mediterranean trade has swung even more sharply, with early premiums peaking, dropping back to zero and then returning close to the highest levels.

Analysts are cautious about attributing every dollar of these increases to Hormuz, acknowledging that localised supply‑and‑demand factors also play a role. But the break from normal seasonality coincides closely with the crisis, and there is now a clear correlation between Gulf risk and an extra layer of cost in spot pricing.

Early peak, fuel pressure and front‑loading

Since carriers began diverting away from the Red Sea, importers have tended to order earlier to make sure boxes arrive before China’s Golden Week at the start of October. With longer transit times, containers loaded after mid‑October may not reach destination in time for the main holiday season, so some of the traditional late‑Q3 peak has already been brought forward into late Q2 and early Q3 in recent years.

In 2024, Asia–Europe rates started climbing in early May and peaked by mid‑July. In 2025, after seeing that the previous year’s May start was probably earlier than necessary, prices picked up in early June and again peaked in mid‑July. This year, some carriers are already reporting an uptick in demand on Asia–North Europe and Asia–Med, with daily prices already reacting to mid‑May general rate increase attempts and further rate hikes announced for June.

On top of that, bunker costs jumped after the latest Middle East escalation at the end of February. Emergency fuel surcharges quickly appeared on spot shipments, but contract cargo is tied to quarterly bunker adjustment factors. That has created a powerful timing incentive, with exceptionally strong shipper demand through late May and into June from larger cargo owners looking to move as much as possible before 1 July, when the next quarterly BAF reset will automatically push up contract freight rates.

Capacity constraints and blankings

Higher oil prices and longer routes via the Cape or alternative legs around the region have increased bunker and operating costs and tied up a large slice of global container capacity in longer voyage cycles.

At the same time, the supply side is tight. Few new ships are being delivered directly into the main Asia–Europe and transpacific loops in the near term, keeping the market “short of ships” and charter rates firm. Alliance partners are also using blanked sailings more actively. Instead of restricting blankings to Chinese New Year and Golden Week, carriers are using blankings as a flexible tool to match capacity to demand and support higher rate levels.

New alliance structures and more tactical service adjustments allow carriers to shift capacity more quickly between trades. For shippers, that can translate into sudden changes in available space and short‑notice rate moves, even outside the traditional peak window.

What this means for the 2026 ocean peak

Taken together, these factors are pulling peak‑season conditions forward and widening the window of risk:

  • Rates on key east–west trades are already running several hundred dollars per 40ft above where they would normally be for this stage in the year, even before the usual late‑Q3 build‑up.
  • Bookings and volumes on Asia–Europe trades are strengthening earlier, as shippers bring orders forward to secure space, get ahead of bunker‑linked increases on 1 July and hedge against further Gulf‑related shocks.
  • With limited new capacity entering the market, more dynamic blanking strategies and ongoing uncertainty around Hormuz and the wider Middle East, the system has less slack to absorb sudden volume surges later in the year.

For UK importers, the practical message is that the “traditional” Q3 ocean peak is being replaced by a longer, more uncertain high‑risk period, starting in late spring and running through to the autumn. 

Some of the early‑season rate increases may not fully stick, but geopolitical risk and fuel cost pressure are now baked into the market rather than being a passing anomaly. 

Through proactive capacity planning and contingency-focused supply chain support, Metro helps customers respond effectively to disruption, changing demand patterns and peak season uncertainty. EMAIL Managing Director, Andrew Smith, to learn more.

China flag and ship

China’s New 2026 Supply Chain Laws: What You Need to Know

May 27, 2026 | , , , , , , , , , , , , , , ,

China is rewiring the legal framework around its ports and supply chains and that matters for every UK shipper moving goods to, from or via China. 

Two new sets of rules in 2026 change who controls disputes, how far you can probe your supply chain, and how China may respond to Western sanctions and due‑diligence demands.

Below we set out what’s changing and what Metro’s customers should be thinking about.

New maritime law puts China’s courts in the driving seat

From 1 May 2026, China’s revised Maritime Code gives Chinese law a much stronger role in contracts of carriage linked to Chinese ports. Where the port of loading or discharge is in China, Chinese courts can apply Chapter IV of the Code to carriage contracts even if the bill of lading or sea freight agreement points to English law.

Law firm HFW has called this a “substantive change”, noting that “chapter four of the Chinese Maritime Code will apply to a contract of carriage regardless of whether or not another law has been incorporated or chosen by the parties”. In effect, if governing‑law and jurisdiction clauses are unclear, Chinese courts now have more room to assert jurisdiction over disputes involving cargo moving through their ports.

Trading agreements often choose English law and London arbitration, while the carrier’s bill of lading may point a different way. The question is whether, in a dispute, a Chinese court will treat the bill of lading as the main contract and apply Chinese law, despite what the trade agreement says.

Some industry experts see this as part of a broader strategic move, to encourage a switch from FOB to CIF terms so that Chinese exporters control freight, insurance and crucially litigation on home turf.

However, any FOB to CIF shift is commercial, not legal, and Incoterms are an international standard which means that FOB remains fully available for China–UK trade, where the buyer wants to control the main–carriage contract and freight costs.

So, China’s legal changes don’t cancel FOB, and UK buyers can still insist on FOB terms and book their own freight, provided the contracts and practical behaviour match that intention.

Supply chain security rules: due diligence under pressure

Alongside the maritime reforms, China has introduced its first comprehensive Regulations on Industrial and Supply Chain Security, effective 31 March 2026. These rules treat supply chains as part of national security rather than a purely commercial matter, bringing them under the oversight of economic, security and cyber authorities.

The most sensitive provision for Western companies is Article 13, which restricts “information gathering activities” related to industrial and supply chains where these are found to breach Chinese law. The language is broad and undefined, creating uncertainty about whether standard due‑diligence activities, which can include supplier questionnaires, ESG audits, human‑rights assessments or on‑site inspections, could fall within the scope.

This sits uneasily alongside emerging Western rules such as the EU Corporate Sustainability Due Diligence Directive and US forced‑labour legislation, which expect companies to map supply chains and scrutinise suppliers in detail. Legal commentators warn that “the new law creates a direct and unresolved conflict between Chinese law and Western due diligence obligations”, with companies potentially facing legal risk in China for work they are required to do under EU or US law.

The regulations also give authorities wide powers to respond to perceived threats to supply‑chain stability. Investigations can target foreign organisations and individuals where there is a “risk or threat” of harm, not just proven damage, and can lead to restrictions on trade, investment and cooperation in China, along with travel or work limits for individuals.

Counter‑measures against foreign sanctions

A companion set of rules – the Regulations on Countering Foreign Improper/Unjustifiable Extraterritorial Jurisdiction, in force from early April – strengthens China’s ability to push back against foreign sanctions, export controls and data‑disclosure demands applied extraterritorially.

These sit alongside the Anti‑Foreign Sanctions Law, blocking rules and the “unreliable entities” regime, creating what one firm describes as an “integrated counter‑sanctions system”. Authorities can investigate and penalise organisations and individuals who implement or even “promote” foreign measures seen as discriminatory towards China, with tools ranging from import and export restrictions to asset seizures and visa bans.

This framework has emerged against a backdrop of heightened geopolitical tension, including Western tariffs and probes into China’s exports, secondary‑sanctions risks around Iran and disputes over strategic assets like the Panama Canal.

What shippers should do

None of this means that trading with China will suddenly stop or that every UK shipper is about to be investigated. But the risk environment has clearly changed, and it is worth taking some practical steps:

  • Check bills of lading, trade agreements and framework contracts to see where Chinese ports are involved, what law and jurisdiction are specified.
    Strengthen English‑law and arbitration provisions and clarify that higher‑tier agreements take precedence.
  • Talk to your insurers about how the revised Maritime Code might affect liability, claims handling and cover for China‑linked moves.
    Consider obtaining Chinese‑law input on key routes or contracts where your exposure is greatest.
  • Map which parts of your ESG and human‑rights due diligence involve Chinese suppliers or sites.
  • For higher‑risk work, such as auditing sensitive regions or investigations linked to sanctions, seek specialist advice on how to stay compliant with both Western obligations and Chinese restrictions.
  • Be mindful of public statements about “decoupling from China” or “boycotting” particular regions. These may be read as aligning with foreign measures and may increase regulatory attention in China.
  • Align messaging between compliance, procurement and communications so that necessary changes to your supply chain are framed around resilience, quality and legal compliance, not politics.

For Metro’s customers, the key takeaway is that China is now using law as an active tool of supply‑chain strategy. Understanding how these new rules work, and adjusting contracts, due‑diligence programmes and communication strategies accordingly, will help keep goods moving while managing a more complex risk landscape.

If you have questions or concerns about any of the developments outlined here EMAIL our Managing Director, Andrew Smith.

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